Question: ( 4 points ) Suppose that the expected return and standard deviation of the market are 8 percent and 1 6 percent, respectively. Stock A

(4 points) Suppose that the expected return and standard deviation of the market are 8 percent and
16 percent, respectively. Stock A has a standard deviation of 45 percent and a correlation with the
market of 0.55. What would the expected return of a portfolio that is equally split between stock A, the
market and a risk-free Treasury bill be if the risk-free rate is 3%?
(4 points) Suppose that the expected return and standard deviation of

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